so let's be honest as much as it's an
ISPs job to provide us with a vital
service there are still businesses and
not surprisingly they're always looking
for exciting and innovative ways to rake
in dat paper some of you won't remember
this but back in the dial-up era they
even charged for internet access by the
hour assuming you were some kind of rube
who didn't just ride from three three
months trial to three months trial by
switching credit cards all the time
anywho Internet by the hour went the way
of the dodo
once broadband proliferated but that
didn't stop their innovation these days
ISPs control the flow of that sweet
sweet data by placing data caps on your
internet usage the concept here is very
simple when you sign up for Internet
service many ISPs will limit you to a
certain amount of data each month
typically somewhere between a hundred
gigabytes and one terabyte if you exceed
your cap you can be charged extra have
your speed throttle down or even have
your service terminated and as high
bandwidth use cases like streaming HD
video have become more and more common
an increasing number of users find
themselves tracking their megabytes as
closely as their calories so why exactly
do the ISPs impose these limits is there
a legitimate reason or is it just a
scheme to squeeze more money out of us
well the most obvious technical
explanation is that any given ISP has a
maximum amount of bandwidth it can
handle it once data caps theoretically
help the pipes from getting clogged but
large ISPs the ones who are most known
for restricted data caps have so much
bandwidth that network usage hardly ever
approaches 100% and us giant Comcast
even tacitly admitted this in a leaked
2015 memo advising its customer service
employees not to tell consumers their
data cap policy was to help alleviate
congestion because it wasn't combined
with the fact that investing in more
infrastructure to carry more data at
once is much cheaper than it was a
decade ago and the number of households
with a broadband subscription has at
least in the u.s. stopped growing the
argument for data caps as a means to
unclog the pipes seems pretty flimsy
especially as large ISPs tend to claim
that the vast majority of their
customers stay below their caps so
what's the real reason behind it well at
least one is P has analogized the
provision of Internet service to the
availability of any other scarce good
pointing out that someone who buys 10
gallons of gas pays more than someone
who buys only 5 this argument might be
intrinsically appealing but opponents
say that because bandwidth is so cheap
and ISPs profit margins are so high
internet service can't be thought of in
the same way add the fact that due to
regional appellees many consumers don't
have a ton of choice when it comes to
ISPs unreliable metering methods and the
ability of ISPs to set their own prices
free from the government rate regulation
that you see on your water or electric
bill and many people have become
convinced that data caps are actually
just another way for the ISPs to collude
with their puppet masters on the
Trilateral Commission and squeeze more
money out of you but this is the part of
the video where we say that's an overly
simplistic and paranoid you know what I
just can't do this yeah Europe's got a
much better system where ISPs are forced
to provide service without data caps and
actually can't come up with a better
explanation and speaking of better
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20% so thanks for watching guys like
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